Florida Tropical Financial 3% Mastercard...

[creditfan]

RIP 3% 

https://www.doctorofcredit.com/fl-tropical-financial-credit-union-3-cashback-mastercard-credit-card-...

[Anonymous]

Does that mean lowered for existing cardholders from 3 points to 1 point, or new applicants?  It doesn't clearly state in that article.  If it's for current cardholders, that's quite a letdown.  I mean, at least lower it to the more "standard" 1.5; all the way to 1 makes it essentially obsolete.

[JNA1]

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@Anonymous wrote:

Does that mean lowered for existing cardholders from 3 points to 1 point, or new applicants?  It doesn't clearly state in that article.  If it's for current cardholders, that's quite a letdown.  I mean, at least lower it to the more "standard" 1.5; all the way to 1 makes it essentially obsolete.

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Yes, that sucks if true. This is one of the reasons I continue use my other 3% category cards in case that happens with AOD. USAlliance has the language of their 3% being a limited time thing as well, though as of now it appears to be going strong. 

[Credit12Fico]

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@JNA1 wrote:

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@Anonymous wrote:

Does that mean lowered for existing cardholders from 3 points to 1 point, or new applicants?  It doesn't clearly state in that article.  If it's for current cardholders, that's quite a letdown.  I mean, at least lower it to the more "standard" 1.5; all the way to 1 makes it essentially obsolete.

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Yes, that sucks if true. This is one of the reasons I continue use my other 3% category cards in case that happens with AOD. USAlliance has the language of their 3% being a limited time thing as well, though as of now it appears to be going strong. 

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I think no bank wants to payout 3% to it's customers with no return. Like everything in this game of credit, the bank needs the right amount of interest paying customers who do not default, to keep any 3% card allive. I suspect that is why USAlliance have the limited time language. They give it a 2-3 year trial period, and if they can't get the right mix of customers on the books, they'll axe it. 3% is after all, an advertising number. They want to attract people to the card and to USAlliance other products, but the profitability has to come from reliable interest paying customers.

[longtimelurker]

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@Credit12Fico wrote:

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@JNA1 wrote:

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@Anonymous wrote:

Does that mean lowered for existing cardholders from 3 points to 1 point, or new applicants?  It doesn't clearly state in that article.  If it's for current cardholders, that's quite a letdown.  I mean, at least lower it to the more "standard" 1.5; all the way to 1 makes it essentially obsolete.

---

Yes, that sucks if true. This is one of the reasons I continue use my other 3% category cards in case that happens with AOD. USAlliance has the language of their 3% being a limited time thing as well, though as of now it appears to be going strong. 

---

I think no bank wants to payout 3% to it's customers with no return. Like everything in this game of credit, the bank needs the right amount of interest paying customers who do not default, to keep any 3% card allive. I suspect that is why USAlliance have the limited time language. They give it a 2-3 year trial period, and if they can't get the right mix of customers on the books, they'll axe it. 3% is after all, an advertising number. They want to attract people to the card and to USAlliance other products, but the profitability has to come from reliable interest paying customers.

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I agree.  So remember to keep your favorite 2% card active as backup!   (They seems to be enough history now to suggest that 2% IS sustainable)

[Anonymous]

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@longtimelurker wrote:

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@Credit12Fico wrote:

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@JNA1 wrote:

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@Anonymous wrote:

Does that mean lowered for existing cardholders from 3 points to 1 point, or new applicants?  It doesn't clearly state in that article.  If it's for current cardholders, that's quite a letdown.  I mean, at least lower it to the more "standard" 1.5; all the way to 1 makes it essentially obsolete.

---

Yes, that sucks if true. This is one of the reasons I continue use my other 3% category cards in case that happens with AOD. USAlliance has the language of their 3% being a limited time thing as well, though as of now it appears to be going strong. 

---

I think no bank wants to payout 3% to it's customers with no return. Like everything in this game of credit, the bank needs the right amount of interest paying customers who do not default, to keep any 3% card allive. I suspect that is why USAlliance have the limited time language. They give it a 2-3 year trial period, and if they can't get the right mix of customers on the books, they'll axe it. 3% is after all, an advertising number. They want to attract people to the card and to USAlliance other products, but the profitability has to come from reliable interest paying customers.

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I agree.  So remember to keep your favorite 2% card active as backup!   (They seems to be enough history now to suggest that 2% IS sustainable)

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Yep, 1-2% seems to be the sustainable range. I never thought 3%+ was and was offered to gain market share in the exploding rewards card market.

[Anonymous]

How about 2.5%?  I feel like you don't see that often.  I mean, there's plenty of 1.5%-2% cards.  Why these attempts to go to 3% which clearly isn't sustainable.  It would seem 2.5% would be a better target number to attempt.  I get it that "3% sounds better" but if it's not going to last/work, who cares.

[Anonymous]

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@Anonymous wrote:

How about 2.5%?  I feel like you don't see that often.  I mean, there's plenty of 1.5%-2% cards.  Why these attempts to go to 3% which clearly isn't sustainable.  It would seem 2.5% would be a better target number to attempt.  I get it that "3% sounds better" but if it's not going to last/work, who cares.

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Wonder what the average merchant fee is (Visa/Mastercard). I would think 2.3% might be in the ballpark. Some of the smaller merchants get hammered with 3.5%+. The banks have to split the fee too so there isn't much left if they want to minimize losses or make money on transactors and rely less on revolvers. 

[Aim_High]

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@longtimelurker wrote  :  So remember to keep your favorite 2% card active as backup!   (They seems to be enough history now to suggest that 2% IS sustainable)

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When I started remaking my card lineup two and a half years ago, my best uncapped and uncategorized cards were Capital One Quicksilver and Chase Freedom Unlimited earning 1.5% back each.   Meh ...  Twenty years ago, that would have been outstanding but I can do better today.

Now I have tons of options that pay 2% to 3%, uncapped and uncategorized.   Even 2% is meh now, but backups are important!  

• 3.00%:   AOD FCU Visa
• 3.00%   Goldman Sachs Apple at selected merchants
• 2.625%: Bank of America Premium Rewards (with Platinum Honors)
• 2.25%   Chase Freedom Unlimited (transferred to CSR for UR travel)
• 2.00%   Goldman Sachs Apple when using Apple Pay
• 2.00%   PenFed Power Cash Rewards

The best thing is that, since I came to My Fico, I know what other options there are where I could get 2% or better if I need another card.  Even if all the others above were nerfed for some reason, I could build another outstanding lineup.  Thanks to My Fico Community! 

[Anonymous]

Or even CB card that followed the Citi DC platform, but instead 1% + 1%, it was 1.5% + 1%... call it the Bonus Cashback card or something that pays that standard 1.5% back for every purchase but gives a Bonus Cashback of 1% more when you pay it off.  I feel like that gimmicky stuff works a lot of the time.  For Transactors it would be great and Revolvers would feel like they're getting their 1.5% and can roll paying interest for however long they want and get an extra 1% when they finally pay it off.  The interest would quickly erode away that extra 1%, so I feel like the lender would make out pretty well.